B.D.

Greetings, It is BD policy NOT to jump into forum discussions. However, we do feel a need to set the record straight so people can draw their conclusions from the facts. Our CEO and Co-Founder, Peter Metcalf, wrote the following a short while back in response to a forum posting on Mountain Project. As it is relevant to your discussion I thought it important enough to re-post with some minor additions, etc. Best to you all, Jeff Maudlin THE EMPLOYEE OWNERS OF BLACK DIAMOND EQUIPMENT It is important to note that BD is 100% committed to building the finest climbing gear on the planet. We go to great lengths to evaluate our processes in house and gain third party certification to the extent that we lead the industry in this regard. As a growing global brand, when we evaluate our production we must be unbiased as to the best overall course of action in terms of quality, cost and location. Our aim is to constantly improve our systems and compromise nothing. First off, it is important to understand that our manufacturing of goods, specifically pro, is being done in OUR factory in China. This is not an outsourced vendor operation. This is a Black Diamond built, owned, and managed facility that is operated and staffed by Black Diamond employees. The BD team that got the operation going and is managing it has and/or does include the former head of engineering and manufacturing of BD SLC, the second in command of our QA department, our senior special project guy, one of our lead process engineers and a host of other BD employees (including myself) who have shuttled back and forth between BD Asia and BD North America. For that matter, we have had BD Europe employees there helping out as well. Conversely, we have had a steady flow of BD Asia employees coming here to SLC to train. Secondly, please understand that the testing equipment, testing standards, and training have all come from BD USA and are managed by BD SLC people at this time. For that matter, our BD facility just passed its ISO-9001 audit that was performed by the same French Senior Auditor from APAV-ASCERT that has been certifying our SLC operation for the past half dozen years. He had nothing but compliments and we are THE first company in our industry to have certification via a European certified body. With our systems passing the ISO Audit, and managed by the same ex-pats who managed it here, it is no longer necessary to re-test in SLC on a regular basis. Thirdly, understand that the supply chain of components and parts is the same as it has been. The cams going onto the Camalots are made from USA-produced 7000 series aluminum, that are machined on our CNCs overseen by our engineers; the anodizing is done by Easton Alumuinum here in SLC and then they are shipped to our Asian facility. Cable, springs, and other parts still come from here or from the same suppliers that we were using when we were assembling them here. The supply chain is not changed. The Asian employees at BD's operation are well trained, dedicated, adult professionals who work in a new, very modern facility that is the envy of people in SLC. All of them who have worked for us get out climbing on company trips and we have built a very large, climbing wall at the facility that allows employees to climb at lunch and after work. Our training and their dedication is nothing less than inspiring. As you know, when you order an iPod or a PowerBook directly from Apple it comes directly from their facility in China. If you are living in Asia and purchase an Audi A4 or A6 it is being made in China and some of the Euro luxury manufacturers are preparing to export their first Chinese-made cars. Having climbed and worked in China, I can assure you that the Chinese are a joy to climb with; take great pride in their work; and are capable of great things. The question simply comes down to management and ownership and the vision and commitment of those in charge. BD Asia shares BD's ethos, commitment to high quality, and they share our passion for the life-defining activity of climbing. It is truly the world's universal Esperanto a language we all not only speak but feel. BD is a very global brand just like climbing and skiing are global endeavors. For that matter, some of our fastest sales growth has been in China and Asia as a middle class emerges and has time to explore the beauty and challenge of Asia's crags and mountains. The marketplace feels much like the U.S. felt like in the very late 60s and early 70s. BD is committed to being global and to being an intimate and contributing member of each climbing/ski community that we are a part of. That is true in Europe as well. This is not about shutting down BD SLC as a manufacturing facility, to the contrary we have expanded our SLC facility this past year by 50 employees and we are fully maxed out, even with two full shifts. It's about the right products in the right places with the right skill sets and expertise, all by BD employees. We view this expansion very much as an extension of what we are already doing. The processes, materials, quality assurance are all the same. It's still Black Diamond. Over the past year we have been assembling a large percentage of our ice tools at BD China. Technical tools are done at both facilities currently though they may shift fully to BD Asia. In addition, we are assembling ATCs there and plan to slowly shift C3s there over time as well as some other products. Many products will remain here while some will be done at both facilities in future years. It is a work-in-process. It's "generally" labor intensive assembly that is done at BD China. Quality assurance is performed both in Salt Lake City and Asia by BD employees. Regardless, it's still BD, and still being made by BD. Finally you should be aware that the majority of our competitors are having climbing hardware products made for them at OEM facilities in Taiwan and China but they neither control nor manage these and most seem to avoid country of origin labels by bringing the goods in via Europe or claiming them as "sub-assemblies" (i.e. two carabiners that are clipped to a draw are a sub-assembly and hence don't say they are made in China, Taiwan or wherever and you are left thinking they are made in Europe). As stated BD is proud to have created our own ISO-certified, owned, staffed, managed and trained operation in Asia. Our customers are the big beneficiaries here. Thanks for the opportunity to state the facts, THE EMPLOYEE OWNERS OF BLACK DIAMOND EQUIPMENT Peter Metcalf CEO/Co-Founder